TORONTO - Byron Nelson has spent over three decades growing his manufacturing company in Ontario, only now to regret his choice.

As he tours a group of reporters around his Leland Industries Scarborough plant where they build nuts and bolts for export to the United States and Europe, he explains he’s losing a battle with the province. His hydro bills have soared over the past year and with Ontario’s new cap-and-trade system coming into effect next month, electricity and natural gas costs will likely spike by another 20%.

That’s why Nelson — and other manufacturers in the province — are choosing to expand their businesses in the U.S. instead of at home.

“By 1995 to 2000, China had moved in and we fought China on the world trade and won,” Nelson said Tuesday during a press conference of the newly formed Coalition of Concerned Manufacturers in Ontario.

“Now our bigger problem is we’ve got to fight the province on controlling some of our hydro costs, which have totally skyrocketed. Our electricity bill has already increased 42% over the past few years. I’ve done the math and I’m looking at a cost increase that is going to take it to over $800,000 a year and with cap-and-trade, it’ll be near $1 million.”

Nelson said it’s these costs — which he says hasn’t been clearly mapped out by the government — that make it difficult for local manufacturers to survive, especially when these companies have already spent significant dollars reducing their environmental footprint.

And while companies within the coalition don’t intend to lay off workers, they won’t be building in Ontario anymore. Leland Industries will make its next move in Illinois and other states until the province improves its energy policy.

The coalition demands the government outline a better energy policy — and transparency on hydro and natural gas bills so they know where their money is going, said spokesman Jocelyn Williams Bamford, who is also the vice-president of Automatic Coating Ltd. in Scarborough.

The Ministry of the Environment and Climate Change counters the cap and trade program won’t have a “significant impact” to electricity rates and some of the money from it will be used to offset electricity price increases by 2020.

The province added its Industrial Conservation Incentive program allows up to 1,000 new businesses to reduce their electricity bills by up to one-third.

( another major loss was the amazon data centre which is going to montreal instead )

Sorry, Ontario: Amazon Sets Up Shop In Montreal Because Of Hydro Prices

The Huffington Post Canada | By Daniel Tencer

Posted: 12/20/2016 5:28 pm EST Updated: 12/22/2016 12:52 am EST

Ontario’s soaring electricity costs aren’t just a financial headache for the province’s residents, they are also a threat to the province’s long-term economic health.

That’s not a new point — business leaders and economists have been warning for years that part of the reason Ontario has become a “new rust belt” is the rising cost of energy in the province.

But the news that online retail giant Amazon chose Montreal as the site of its first Canadian cloud computing data centres has sparked speculation once again that Canada’s largest province is losing out on jobs and wealth because of runaway electricity costs.

Teresa Carlson, VP for the public sector at Amazon Web Services, told the Ottawa Citizen the company chose Montreal because of the ready availability and low cost of hydro-electric power in the province.

“We picked the area that we did because of the hydro power. … We did find (Quebec) to be very business friendly.”

Amazon has not said how many people are or will be employed at the Montreal-area data centres. Citing customers' security, the company has been famously secretive about its data centres' locations. Spokespeople have simply described them as "a big investment."

The Quebec government launched an economic action plan in 2013 that includes a 10-year discount electricity rate for large business consumers who invest in new jobs in the province.

power lines uk
Amazon will set up shop in Montreal because of the area's low hydro rates. (Photo: Jon Bower/Getty Images)

Bank of Montreal senior economist Sal Guatieri said Tuesday that Quebec now enjoys a “shocking advantage” over other provinces because its hydro costs have been far more contained than elsewhere.

“Outside of Alberta (where hydro costs have actually fallen, at least for consumers), Quebec has enjoyed the slowest increase in electricity prices among provinces in the past decade,” Guatieri wrote in a client note.

While electricity rates have gone up about 33 per cent nationally over the past decade, prices in Quebec rose by just 13.2 per cent in that time. Adjusted for overall inflation, Quebec's electricity prices have actually declined. In Ontario, they've jumped 59 per cent, Guatieri wrote.

The Ontario Chamber of Commerce has argued for years that rising energy costs in the province are making it harder for businesses to hire and expand.

It argues that Ontario has to do a better job of balancing its environmental priorities and business priorities. The phasing out of coal (a goal on which Ontario has led the world) is part of the reason why the province's electricty rates have climbed so high.

In a submission to the Ontario government last week, the chamber suggested launching a “capacity market” under which electricity from various sources would be auctioned off, instead of being contracted in advance. It argues this would result in lower prices for end users.

“While the Ontario government is to be commended for some of the results it has achieved on the energy file (such as being a world leader in renewable energy resources) the status quo is presently unsustainable for ratepayers,” the chamber said

A Toronto-based manufacturer of fasteners says it is opening its new manufacturing facility in the United States because rising energy costs have made Ontario uncompetitive for investment.

Leland Industries employs about 220 people at its plants in Toronto and Waterloo, Ont., and founder and CEO Byron Nelson says those workers will be protected.

But Nelson says Leland’s business is increasing and expanding and Ontario’s high electricity costs make it hard for the company to compete on a global scale.

Nelson anticipates Ontario’s new cap-and-trade system, which comes into effect in January, will cause electricity and natural gas costs to rise even higher.

Nelson says Leland will not invest in Ontario any more because “the costs are just out of sight.”

And he says the company plans a major expansion in production capacity in Illinois.

“This is good news for our company, but bad news for Ontario,” Nelson said Tuesday.

“We’ve prided ourselves that a Canadian manufacturer with the right people, processes, and technologies, can compete with anyone in the world,” he said. “But, we can no longer compete with the escalating energy costs we are seeing here in Ontario.”

Jocelyn Williams Bamford — vice president of Automatic Coating Limited and spokeswoman for the Coalition of Concerned Manufacturers in Ontario — said Leland is one of many smaller and medium-sized Ontario-based manufacturers that are looking to grow and seriously considering investing outside of Ontario.

“Ontario’s energy costs are rising so quickly many manufacturers are reassessing whether it makes sense to expand production in this province,” she said Tuesday in a statement.

Bamford said manufacturers have become more competitive and have been able to reduce emissions at the same time because they have invested in new technologies.

“Higher energy costs leave us less money for investment. And, if manufacturers can’t invest in Ontario, it’s not good for the economy or for jobs in this province. Ultimately, it’s not good for the environment either,” she said.

Nelson said Ontario has already lost a lot of manufacturers and will lose more because those in government “just do not understand.”

Ontario Economic Development and Growth Minister Brad Duguid said in an email that the government recognizes that it has more work to do, “especially when it comes to controlling the costs related to upgrading our energy infrastructure.”

Duguid also noted that the government will be lowering electricity costs for small and medium sized businesses by eight per cent starting Jan. 1, but Bamford said that “won’t come close to offsetting the energy and transportation cost increases that lie in store for smaller manufacturers across Ontario.”

Available this winter will be red, yellow and orange grape tomatoes, red cherry tomatoes, sweet red cocktail tomatoes and mixed medley tomatoes, according to a news release. All of those are being packed under the Tomz brand, which has new packaging that was introduced at Fresh Summit 2016.

The top-seal packaging highlights the local nature of the product, with “Ohio Proud” and a U.S. flag on the front.

The company plans to ship OhioRed roma and beefsteak tomatoes later this winter.

To keep an emphasis on local, NatureFresh has been expanding its Ohio operations to produce throughout the year.

Following the December conclusion of its third phase of construction, NatureFresh will have added 45 acres in the past year.

“Growing our tomatoes year-round in Ohio significantly reduces the food miles that the product must travel to store level,” Ray Wowryk, director of business development, said in the release. “We are increasing shelf life by picking the fruit off the vine at a later color stage to ensure we deliver maximum flavor.”

Leamington, ON (January 5,2015) – Growing fresh vegetables in the mid-west is about to take a major turn in a new direction as Nature Fresh Farms™ has announced a large-scale investment in northwest Ohio. The company plans to begin construction on a 175-acre greenhouse facility in Delta, Ohio in the spring of 2015.

“This is an exciting time for Nature Fresh Farms™ as we expand our operations to include a U.S. growing facility. This development will allow us to better serve our Ohio customers with locally grown produce, year-round & continue to grow our U.S. operations.” stated Peter Quiring, President. Contingent upon acceptable levels of incentives from the State of Ohio & other government authorities as well as utility rates agreeable to Nature Fresh, the company would be poised to ship its first case of vegetables in December, 2015. The greenhouse project will be completed in several phases over the next seven years with a total investment approaching $200M by the year 2022.

“Nature Fresh Farms™ intention to open its first U.S. production facility in Delta is great news for northwest Ohio”, commented Aaron Pitts, Jobs-Ohio Managing Director. “We look forward to working closely with the Nature Fresh Farms™ team and our local partners as the company establishes operations in the United States,” said Pitts.

Nature Fresh Farms™ has partnered with Jobs-Ohio, the Regional Growth Partnership, the Fulton County Economic Development Corporation, York Township and the Village of Delta after an extensive search for the optimal site for this expansion project. The Delta, Ohio site was selected due to its easy access to current and future customers as well as proximity to the company’s headquarters. Nature Fresh Farms™ is also exploring a partnership with Northstar/Bluescope Steel to utilize carbon dioxide & waste heat from their operations. This innovative & environmentally beneficial partnership will be one of the first of its kind anywhere in the United States.

“The proposed investment by Nature Fresh Farms™ is an exciting project for the York Township, the Village of Delta, and surrounding communities”, stated Matt Gilroy, Executive Director of the Fulton County Economic Development Corporation. “The company plans to employ more than 300 people by the last phase of the project and its payroll at the Fulton County location will be nearly $12 million annually. We welcome Nature Fresh Farms™ to Fulton County and will work diligently to meet the company’s needs & complete the project successfully,” said Gilroy.

Skyrocketing hydro costs is stifling economic growth in Ontario as businesses close up shop or leave the province altogether in search of lower prices, says the Windsor-Essex Regional Chamber of Commerce. (Colin Perkel/Canadian Press)

Robbie Shepley has received hydro bills as high as $1,500 at his ice cream shop in Essex, Ont. That amount is more than double what he typically received eight years ago when he paid up to $600.

Those types of costs stifle economic growth, leading to significant job losses as businesses shut down or leave the province to find regions with lower hydro costs, according to the Windsor-Essex Regional Chamber of Commerce, which has lobbied the provincial government to cut rates.

Shepley said he would be able to hire more part-time employees at his seasonal store Ice Cool Treats, if it weren't for the extra expenses.

"I remember when we first started. If we were paying those hydro rates, as well as working for free to get the business started, I don't know if we could have afforded to do it."

Windsor Hydro
The owner of Ice Cool Treats in Essex, Ont. has seen hydro bills more than double since 2008, reaching $1,500

Chamber president Matt Marchand has heard from several business owners who are considering moving to places like Ohio, where they face lower energy costs.

"It's the number one issue facing the Chamber and the business community across Ontario," he said. "We have to put a brake on the rising cost of electricity."

Heavy hydro burden

Other businesses in the region are feeling the pinch with some of them going to extreme measures to use less energy.

Shaukat Khan is considering shutting down his Windsor restaurant Kabab N Curry because he can't afford the hydro.

In less than a year, his bills have doubled, despite turning his lights off until customers walk through the door.

His Indian restaurant has only been open for two years. Hydro bills have wiped out any profit he makes.

"It's not worth it. It's not worth going in debt," he said. "I don't know where to go or what to do."

Shepley had to get creative with his energy use as well. He and his staff turn off air conditioners overnight and they only use three freezers whenever they can.

He has used up to five freezers, but that became far too expensive.

'In mid-summer, we hit a peak time for about two or three weeks when we have to run them all, but that's it," he said. "Then it's a game of cat and mouse of trying to find room for it without having to run an extra freezer."

Taking struggle to Queen's Park

The economy also suffers from the lack of spending as homeowners spend more of their money on hydro, Marchand explained.

Hundreds of Ontario residents took their frustrations to Queen's Park this week, including Cherie Beneteau of Amherstburg.

She has seen her hydro bills more than double in recent months, despite her best efforts to conserve energy.

Beneteau has struggled to keep up with her bills after losing her job when the company moved to the U.S. She is also living on a single income. Her husband died of lung cancer three years ago.

Ross McKitrick and Tom Adams, Special to Financial Post | July 10, 2015 12:03 AM ET
More from Special to Financial Post

Steve Hockstein/BloombergRoss McKitrick and Tom Adams: Perhaps Ontario business leaders are finally realizing that moving their deck chairs to the high side of a sinking ship is not a long-term solution. .

Business group sounds alarm over soaring electricity prices, foolish policies

The Ontario Chamber of Commerce this week released the findings of an unprecedented consultation with its members and the results are painfully clear: soaring electricity prices are killing business in Ontario. One in 20 Ontario businesses now expect to shut their doors in the next five years due to electricity costs, and nearly 40 per cent report that electricity costs have already forced them to delay or cancel investment decisions.

The Chamber acknowledges that the larger policy picture from Queen’s Park is grim, with plans for cap-and-trade, higher minimum wages, rising workplace safety premiums and a new government-run pension system. But their report, Empowering Ontario, focuses above all on soaring electricity costs, a problem unique to Ontario that is directly traceable to a decade of foolish policy decisions.

The Chamber is to be applauded for taking on this issue. Many Ontario businesses have tried to shield themselves by seeking beggar-thy-neighbour gimmicks that merely shift their costs onto others, resulting in a less efficient and transparent pricing system. For instance the Chamber slams the Class A/B rate split that benefits large consumers by redirecting some of their costs onto households and small businesses.

industrial

Perhaps Ontario business leaders are finally realizing that moving their deck chairs to the high side of a sinking ship is not a long-term solution. With the Ontario Liberal government this week preening on the global climate stage at the Climate Summit of the Americas in Toronto, doubling down on its costly green agenda, the business community needs to face up to the bigger picture.

Based partly on a 2014 study we did for the Fraser Institute, the report explains that Ontario levies a (soaring) non-market surcharge on electricity called the Global Adjustment (GA), which funds above-market revenue commitments to power generators and the cost of conservation programs. As they correctly explain, the upward march of the GA began with the decision to phase out coal-fired power generation and phase in renewables using the costly Feed-in-Tariff (FIT) subsidy. The problem has been exacerbated by a capacity mismatch that leads to excess production being exported at a loss year-round.

The Chamber reviewed 10 possible solutions and ranked them in terms of potential to mitigate the mess. While we agree with many points in the Chamber’s analysis, there are some important options they left out, and they overstate the relevance of others.

In their critique of a proposal to increase the peak-to-off-peak ratio of time-of-use (TOU) pricing the Chamber correctly alludes to the potential for unfairness and inefficiency when marginal prices for consumers do not reflect actual marginal costs of generation.

The Chamber also rightly downplays the potential role of hydro purchases from Quebec as a silver bullet for replacing nuclear down the road. The infrastructure required for large-scale imports, and Quebec’s constraints in the winter months, make it unlikely this is a reliable long-term strategy for Ontario.

The Chamber unfortunately dismisses the possibility of cancelling FIT contracts, mistakenly believing that to be illegal. As Bruce Pardy has explained in a report published by the Fraser Institute last year, the government that signed the odious contracts can also pass legislation to nullify them, thus overcoming the legal obstacle to their cancellation.

While the Chamber accurately charts the coal phaseout as the headwaters from which the river of bad policy flowed, they failed to follow their own logic and call for a reversal of the error. Instead they dismissed the option “given its environmental impacts.” In saying this they have unfortunately bought into, and thus perpetuate, a myth promoted by the government that the Lambton and Nanticoke coal-fired power plants had large effects on Ontario air quality. The government’s own meteorological simulations in 2005 showed this was untrue. Indeed a simple glance at Ontario’s emissions data showed it could not possibly make sense.

The Environment Canada emissions inventory for Ontario shows that in 2008, one year before the introduction of the Green Energy Act, coal-fired power plants emitted 4,070 tonnes of particulates, one-tenth of one per cent of the 3.8 million tonnes emitted in the province that year.

Related
Hydro One sale raises legal issues and violates Ontario’s Electricity Act, union says
Counterpoint: Invest in electricity infrastructure now!
.
Counting only ultra-fine particulates the coal plants were responsible for four-tenths of one per cent. That was down slightly from the six-tenths of one per cent they emitted in 2005, the year the province began attributing over 300 deaths annually to coal plant emissions. On this logic, their model would imply that air pollution from all other sources kills about 50,000 people. Since there are only about 90,000 annual deaths in Ontario from all causes, it is remarkable nobody noticed the dead bodies in the streets.

The coal death toll claim is absurd but it illustrates the government’s warped propaganda campaign that derailed sensible power planning discussions. It is understandable that the Chamber shied away from the coal option, so toxic is the demagogy even today. But Ontario is in a dire situation and it won’t be remedied until the falsehoods that got us here are refuted, one by one, including the myth of coal as mass murder.

With the Canadian economy inching towards recession, the Chamber has burst the bubble of official silence around Ontario’s electricity policy disaster. They have exposed the link between rising power costs and provincial economic stagnation. This is a major policy disaster and it will require a major course correction to fix it.

Ross McKitrick is a Professor of Economics at the University of Guelph and a Senior Fellow of the Fraser Institute. Tom Adams is an independent electricity system researcher. Their 2013 report “What Goes Up: Ontario’s Soaring Electricity Prices and How to Bring the Down” was published by the Fraser Institute.

People should understand that various governments, going back to Bill Davis, have killed the golden goose -- cheap power. This was the issue that the Harris government fumbled as well.

I don't mean to exonerate the Liberals and NDP either. Most of these governments, Harris excepted, used Hydro to promote development. The 'green energy'' fiasco is what has driven the last nail into the coffin.

Perhaps the answer is ýet another major expansion of government, big enough to absorb all the unemployed females and foreign-born -- which is, of course, government policy all over the country.

Electricity costs are one issue;
Punishing business with peaking pricing between 9 - 5 M-F further increases that issue,

But all energy has increased in cost as a result of the HST grab;
Natural Gas, Electricity, and Gasoline which were formally free of the PST now have the PST portion charged on them as part of the HST amalgamation.

Even before the management issues that led to the current cost of Electricity in Ontario we slapped an 8% tax on it, granted the OLP has now realized that error and has discussed removing that portion of the tax off electricity but that isn't as much a savings as it is going back to how it was a few years ago.

The cost of doing business in upstate New York or Michigan has a lot of appeal, even with the weakness of the Canadian Dollar.

If we saw a par dollar again given the factors in Ontario there would be much larger issues.

People should understand that various governments, going back to Bill Davis, have killed the golden goose -- cheap power. This was the issue that the Harris government fumbled as well.

I don't mean to exonerate the Liberals and NDP either. Most of these governments, Harris excepted, used Hydro to promote development. The 'green energy'' fiasco is what has driven the last nail into the coffin.

Perhaps the answer is ýet another major expansion of government, big enough to absorb all the unemployed females and foreign-born -- which is, of course, government policy all over the country.

what gets me is that Ontario has done this to itself , that is whats really hard to believe , as other areas try and become more competitive and business friendly in an attempt to create jobs and attract employers , Ontario is moving in the other direction and focused on Green goals and such , without any real evidence its doing anything significant for the environment

its hard to believe a province that was once so business friendly and home to the TSX /Toronto stock exchange/ business centre of Canada would of been lead down such a route of self destruction

the one article also states that even getting some power from Quebec which Ontario is now doing won't be enough to bring prices down , it could be a long path forward before this mess gets figured out and actual solutions are found

( an interesting article in the globe , but I don't know if Ontario's plan is even really saving the planet ? the big question is who is benefiting from this ? someone clearly is and its not the average Ontarian )

Ontario’s plan: destroy jobs, save the planet

Margaret Wente

The Globe and Mail

Published Wednesday, Jan. 04, 2017 6:00AM EST

Here in clean, green Ontario, where the ambitions of our government know no bounds, a bright new year has dawned. Gasoline is likely to rise by 4.3 cents a litre. Your hydro bill is going up. You’ll pay more for natural gas, too. But don’t feel blue. You are helping save the planet. All of these higher costs are part of the government’s new cap-and-trade scheme, a vast multibillion-dollar enterprise that is designed to cut greenhouse-gas emissions by redistributing tons of money to big emitters in California and subsidy-seekers here at home.

Unfortunately, the timing is terrible – especially for an increasing number of small- and medium-sized business owners, who can’t figure out how to make a living here any more.

Jocelyn Williams Bamford is vice-president of Automatic Coating, a small, specialty manufacturer based in Scarborough, Ont., that employs 75 people. “Our electricity costs are through the roof,” she told me. The reason is something called “global adjustments” – a fee to cover the cost of green energy and conservation programs that is unrelated to the actual cost of electricity itself. Companies like hers are facing staggering hydro bills of $30,000 or $40,000 a month – mostly because of government investments in green energy that Ontario doesn’t need and can’t use.

Now comes cap and trade. That will hurt even more. Larger companies will be required to buy pollution allowances, but smaller ones will just get whacked with extra costs. How much? An estimate by law firm Stikeman Elliott puts the tab at $136,000 a year for starters, rising to $720,000 by 2030. But in fact no one knows what the costs will be or how the billings will work. Large emitters will initially get breaks to allow them to adjust. Small businesses will get none.

“The Ontario government is making sure it will be impossible for manufacturers to compete in a global market,” says Byron Nelson, whose company, Leland Industries, employs about 220 people in two Canadian plants to make fasteners for global export markets. “We’ve expanded a lot over the last number of years, but doing business here is so damn hard.” Most companies like his have invested heavily to reduce emissions, with great success. But the government doesn’t care. The next plant he opens will be in Illinois, where electricity costs are about half of Ontario’s – and where somebody actually listens to people like him.

These companies are exactly the kinds of businesses that everybody in the world is desperate to attract – innovative, globally competitive firms with high-skilled jobs. They are increasingly important to what remains of manufacturing in Ontario, much of which was wiped out by China and other low-cost countries. Yet Ontario’s government seems determined to drive them off. Automatic Coating, which is a supplier to the U.S Navy, is being constantly courted by U.S jurisdictions that want to lure it south of the border. U.S. jurisdictions have been begging the company to move south. “We want to stay here but we feel like we’re being pushed out, ” Ms. Bamford says. “We honestly don’t know whether to pick up and leave or stay and fight.”

Things are better in Alberta – sort of. Rachel Notley’s carbon-pricing scheme, which also comes into effect this week, is everything that Ontario’s is not. It is comprehensible and transparent. You may not like it, but at least it makes sense. Ontario’s scheme is hopelessly opaque, and offers endless opportunities for mischief. Major details (such as how to count emissions cuts) have yet to be worked out. Business people are astonished that such a half-baked scheme is actually going ahead.

Ontario’s Liberals are delusional. They actually believe that they can re-engineer industry and society and even the climate itself. Fortunately, the voters are catching on. Premier Kathleen Wynne’s approval rating stands at a miserable 14 or 15 per cent. Ontarians go to the polls next year. The Conservatives can win simply by sitting back and letting people open their hydro bills every month.

Everybody wants to do something about climate change. The challenge is to figure out whether the costs we’re imposing on ourselves are reasonable and fair compared to our competitors. We should also keep in mind that fossil fuels still supply around 80 per cent of the world’s energy demand – and the same will be true in 2040, no matter how much we choose to kneecap ourselves.

Whatever the effect on the climate ends up being, it won't be detectable. Trust me.

In the meantime, the article says:

Quote:

Rachel Notley’s carbon-pricing scheme, which also comes into effect this week, is everything that Ontario’s is not. It is comprehensible and transparent. You may not like it, but at least it makes sense. Ontario’s scheme is hopelessly opaque, and offers endless opportunities for mischief. Major details (such as how to count emissions cuts) have yet to be worked out. Business people are astonished that such a half-baked scheme is actually going ahead.

Count on it -- this will be a source of revenue for the province, and it will give them added patronage power, by giving their chosen enteprises an exemption. That's how it worked in Germany, and the Ontario Liberals are all about fooling the public to their profit.

meanwhile in Manitoba , where energy costs aren't the issue they are here

Vic Fedeli Verified account  ‏@VictorFedeli · Jan 18

In pre-budget hearings, Maple Leaf Foods says Hydro rates are highly unpredictable and up 18% in 2016 alone. Could save 65% if in Manitoba.

PC Party of Manitoba ‏@PC_Manitoba · 2m2 minutes ago

Over 150 new jobs coming to Portage la Prairie. Learn more:

Over 150 New Jobs Created!

January 19, 2017

Our PC Government and Roquette have announced a historic investment in the province’s food-processing industry. A new, $400-million pea-processing facility near Portage la Prairie will be built!

Once open, the facility is expected to create approximately 150 jobs with an estimated annual payroll of around $9 million. The facility will help to better serve customers in North America and globally with high-value nutritional choices including vegetarian foods and high-protein sport nutrition products.

Construction is expected to begin in the Rural Municipality of Portage la Prairie before the end of 2017. Roquette is committed to working with local contractors, skilled trades and professional service providers, with approximately 350 full-time jobs anticipated during the project’s two-year design and construction phase.

Roquette chose Manitoba as the location for the new facility due to the quality of the workforce, the strength of its diverse economy, location as a transportation hub by air, rail and road to the rest of the continent, and access to reliable, sustainable and economical hydroelectric energy.

This new investment shows that under our PC Government, Manitoba is once again open for business!

Gerry Mastronardi, owner of TG & G Mastronardi greenhouses and his son, Brennan Mastronardi, are shown at the Leamington operation on Feb. 6, 2017. The businessmen are upset about the province's cap and trade program which they say will put them out of business or force them to look to the States to operate or expand.
​

The program favours large companies and large carbon polluters while hitting small greenhouse operations hard which will drive them out of business or push more and more growers to expand to Michigan and Ohio, TG&G Mastronardi owner Gerry Mastronardi said.

“I have a son who came back home and I’m telling him there’s no future here. You’re going to have to go and start looking somewhere else because if this persists, there won’t be anything left. We’ll be lucky to survive,” Mastronardi said of the family-run, 16-acre tomato operation.

Greenhouse growers asked Wynne to delay the cap and trade program, which is supposed to reduce carbon dioxide or greenhouse gas emissions, but it started in January. Now greenhouse growers who couldn’t voluntarily qualify for the program because their operations are too small or too energy efficient are getting their first natural gas bills.

Mastronardi said his natural gas delivery charges, where he said the carbon tax is hidden, will double from about $120,000 a year to $240,000. Large carbon dioxide producers are exempt from the tax in the first year and overall will pay far less per acre over six years, he said.

Growers want to meet with Wynne and if they can’t resolve the issue, Mastronardi said the next step would be getting enough farms together for a legal challenge of the program, which he said discriminates against smaller operations.

“The only way I can get in (the program) is if I open up my steam valves and shoot everything off into the atmosphere and burn the fuel up but come on, that’s ridiculous,” Mastronardi said. “It doesn’t make any sense. That’s why we’re up in arms here.”

Gerry Mastronardi, owner of TG & G Mastronardi greenhouses and his son Brennan Mastronardi are shown at the Leamington operation on Feb. 6, 2017. The businessmen are upset about the province's cap and trade program which they say will put them out of business or force them to look to the States to operate or expand.

Gerry Mastronardi, owner of TG & G Mastronardi greenhouses and his son, Brennan Mastronardi, are shown at the Leamington operation on Feb. 6, 2017. The businessmen are upset about the province’s cap and trade program which they say will put them out of business or force them to look to the States to operate or expand. Dan Janisse / Windsor Star
​
Matt Marchand, president of the Windsor-Essex Regional Chamber of Commerce, said cap and trade will harm the greenhouse industry that has an economic impact in the billions of dollars.

“The ultimate conclusion of cap and trade for now is that we’re going to export jobs into coal-producing jurisdictions like Ohio and others, and import pollution,” Marchand said.

The program makes no sense especially now that Donald Trump is the new U.S. president and has shown little interest in cap and trade programs, Marchand said. It means Ontario greenhouses will have extra costs their competitors won’t have and as greenhouse operations expand to spots such as Ohio, Ontario jobs will be exported to states that are using coal, he said.

Greenhouses that are already struggling with skyrocketing electricity costs can expect to pay $80,000 to $250,000 more a year on natural gas because of cap and trade, Marchand said.

Carl Mastronardi, of Sunrite Greenhouses in Leamington and Kingsville, said if he had not installed $2 million worth of energy-saving curtains at one of his few small greenhouses, his company could have qualified for savings that are available to the bigger polluters. He said there is no incentive to save energy.

“None of the growers will be able to survive if we put this tax on,” he said. “The problem is we are the industry that uses the CO2 (carbon dioxide) more than any other industry because our plants absorb CO2 and let out oxygen. We can’t figure out what (Wynne is) doing.”

He said Alberta and British Columbia worked with their greenhouse industries.

Jamie Diniro has 26 acres of greenhouse cucumbers and saw his gas bill go from more than $19,000 in December to $41,000 in January because of cap and trade. He thinks the Liberals have so messed up the electricity system, they’re moving to natural gas now.

Lindsay Davidson, a spokesman with the Ministry of the Environment and Climate Change, did not respond to specific questions posed Monday, one of which was whether Wynne would meet with the greenhouse vegetable growers. Davidson said in an email late Monday that the government had met with the Ontario Greenhouse Alliance which includes flower growers.

The greenhouse growers say Wynne needs to meet with them and understand the impact on smaller operations.

Ontario has about 200 greenhouse vegetable growers and more than 2,800 acres of greenhouses with most of that in the Leamington/Kingsville area. The value of the Ontario greenhouse vegetables sector was more than $820 million in 2015

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